Employers that meet certain conditions in Japan have to join labor and social insurance plans for their employees,as well as for foreign employees who work in Japan.
AKJ Partners provides various social insurance procedures for foreign employees, including support for joining the public insurance system and for applying social security agreements, as well as for receiving lump-sum withdrawal upon returning back to their home countries.
Publich insurance system in Japan
- A corporation, in principle, has to enroll its employees with the public insurance system in Japan.
- Basically, half of the insurance premiums is deducted from employee salary and the other half is paid by the corporation.
Insurance system for foreign employees in Japan
- A corporation, in principle, has to enroll its foreign employees with various types of insurance same as its Japanese employees.
However, there are some exceptions, for example, for temporary or short-term employees.
In such case, the corporation is excused from its obligation to enroll these employees to the insurance system.
When a foreign employee withdraws from a social pension plan
- When a foreign employee who has joined a social pension plan in Japan returns to his/her home country and meets certain requirements, a portion of pension premiums already paid will be refunded upon request.
This claim must be made within two years of the employee’s return.
Social security agreements
- Japan has concluded social security agreements with some countries to prevent double payments of social insurance premiums in Japan and employee’s home country and to cover the period of enrollment in both countries.
- In order for a person who will work as an employee in Japan to be covered under the provisions of the agreement,the person must submit a certificate of application issued by the competent authority of the partner country to the employer.
The certificate must be presented during a social insurance audit upon request from the auditor.
- Consulting for labor management
In recent years we face the increasing number of labor disputes arising from unpaid overtime pay or unduly dismissal. To avoid such troubles, we believe that the labor regulations reflecting the actual work situation and also the proper labor management structure need to be established and implemented. We make suggestions on the improvement plan for risk around labor management both currently identified and potentially recognized.
- Consulting for subsidy
There is a wide range of various subsidies, and relevant systems and regulations are frequently changed. We provide the useful information on such various subsidies as well as the advisory service as to how to utilize and apply.